Yeah, you can make a smaller engine make the same horsepower as a larger engine (as George claimed about his 1776's, and he's right, you can), but a smaller engine has to rev higher to do this. The problems- an engine that goes to 7,000 or 7500 (or 8,000) rpm with power requires more maintenance (it just plain wears parts out faster) and moving the powerband that far up takes it away from where you'll spend most of the time on the street- the low end and lower midrange.
A bigger engine that makes the same (or even a little less) power but peaks at only 6,000 rpm will require only regular maintenance and have way more bottom end/midrange (which is what you use for driving 95% or more of the time) which will make it way more fun to drive (and generally get better mileage). A smaller high strung engine will still be fun; I'm just saying that more cc's makes it more fun. Al